RxSight (RXST) 25th Annual Needham Virtual Healthcare Conference summary

Key conference takeaways

• Premium channel in ophthalmology is gaining traction due to patient demand and declining reimbursements for standard procedures.

• Light Adjustable Lens (LAL) received strong endorsement from surgeons, with 80% indicating they would choose it for themselves or family.

• Over-60 population, controlling two-thirds of national wealth, is less impacted by inflation and more willing to invest in premium vision solutions.

• Booth traffic and engagement at ASCRS were high, driven by testimonials from doctors who became patients.

Commercial strategy and U.S. market outlook

• Focus has shifted from expanding installed base to increasing utilization within existing accounts through clinical and marketing initiatives.

• About 1,100 systems are installed in North America, covering roughly 10% of premium procedures by volume and 15% by revenue.

• Ongoing engagement and education efforts are prioritized to drive deeper penetration and utilization in practices.

• Commercial strategy includes flexibility in placement models, such as volume commitments and leasing, to support adoption.

• Utilization guidance for 2024 is around eight procedures per month per account, with low single-digit volume growth expected.

Pricing and margin dynamics

• LDD average selling prices (ASPs) are trending lower, with expectations for further decline as international sales grow.

• Pricing adjustments are made to avoid inhibiting adoption, and international ASPs are expected to be lower than U.S. levels.

• Gross margin guidance for 2024 is 70%-72%, reflecting higher cost inventory flowing through in 2026.

• LAL pricing remains stable and highly profitable, with expectations to maintain strong margins even as international mix increases.